Chapter 235
Chapter 235
Kim Jae-hak, after being discharged from the medical service, received rehabilitation treatment and thought about how to live and eat in the future.
He eventually decided to start the business he had always dreamed of. During that time, I had experience working in a restaurant, so I was confident in my business.
Because my legs are uncomfortable, it is difficult to stand for a long time or do a meat restaurant where you have to serve. After much deliberation, he chose franchise stores, especially Meister Pizza.
Although it is a newly established brand, it has excellent taste and has a strong headquarters, so trust has gone.
He signed a franchise contract with the head office, and also signed a contract with the shopping mall. And he received various training while doing store interiors.
A few months later, the 15th Meister Pizza opened in Paju.
It’s not like chicken, but the pizza market is also fierce. Although the store struggled for several months after opening, the sales increased little by little thanks to the head office providing TV commercials with famous celebrities and the store owner himself working diligently.
The number of regulars increased, the profits increased, and there was hope that if we worked hard like this, we would be able to do better.
But one day, the head office manager came to the store.
The manager encouraged him to expand into a two-story store as the area’s commercial district and population are growing.
It’s been a year since we started our business, and we’re barely establishing ourselves. If you want to expand, you have to relocate the seats and redo the interior.
It was too much of a risk in a state where the invested money had not yet been recovered.
Several times, high-ranking people from the headquarters came to us one after another and continued to invite them, but he refused them all. A few months ago, no one had come any more, and I just thought it was over.
But one day, as I was going to work, I saw a sign for Meister Pizza on the opposite side of the road.
* * *
When Jaehak Kim finished talking, Ellie asked.
“Have you not complained to the head office?”
“Why didn’t you do it? I went straight to the head office and complained.”
When they complained about where there is a store that is directly managed so close to a franchisee, the head office said that it opened a store for customer convenience, and insisted that there is no problem because the administrative districts are different.
In fact, the dong differs across the six-lane road. But politicians and civil servants don’t care, who cares?
From the consumer’s point of view, it’s just a difference.
If you’re selling the same food under the same brand, you don’t even have to ask which one to choose: a small store in the alley or a large two-story store on the street.
When he continued to visit and protest, he refused to be interviewed at all and mobilized security guards to bring him out.
“I warned you that if you keep doing this, you may face other disadvantages later, so you can’t protest anymore.”
There are not one or two means by which the headquarters can sanction franchisees. Therefore, franchisees have no choice but to keep an eye on the head office.
Just because there is already a store that sells kimchi stew nearby doesn’t mean you can’t open another kimchi stew nearby. Because the product is different.
The kimchi stew of the newly opened store has a different taste, a different quantity, and a different price. The choice of which of the two kimchi stew is entirely up to the consumer.
However, a franchise sells the same product at the same price. For this reason, they usually limit their own close-up stores.
Of course, it is not uncommon for the same franchise to be established in one area, but that is only possible in places supported by floating populations such as Gangnam, Hongdae, and Myeongdong.
This is not the center of Seoul or a famous tourist attraction, and how many people do you think is floating population?
At the time of the opening of a direct-managed store in the immediate vicinity, the decline in sales was almost certain.
“The bigger problem than the establishment of directly managed stores is the discount.”
As soon as the directly managed store opened, a 40% discount was applied to all items as an opening event.
Since there was a place that sold the same pizza for 40% cheaper, sales plummeted. But now, there are no customers at all.
“Then what do you do?”
“Once the discount is over, it will get better. We eat at the store. Everyone will go there, but won’t delivery sales recover?”
However, the opening event has already been held for two months, and there is no word on when it will end. The store is virtually closed. The ingredients ordered from the headquarters went straight to the food waste bin without being used.
“But if you sell like that, do you have any leftovers?”
Jae-Hak Kim shook his head.
“Even if it’s the cost of materials, considering the rent and labor costs, it should be considered a deficit.”
When asked about the opening event, the answer came back that if you wanted to, you could do the same 40% discount.
Headquarters can survive a loss, but franchisees cannot.
After a few months like this, the store should be closed.
Jae-Hak Kim let out a long sigh.
“I’d rather not be upset if it’s my fault or the business isn’t working because the game isn’t good.”
I’m working hard in business, but it’s because of the head office, so I’m going crazy.
He mumbled as he touched his right leg with his hand.
“I don’t know what other people think, but I put all the compensation I received after losing a leg here. With such a body, I can’t go anywhere, let alone get a job. If this store goes bankrupt, I’m done.”
Franchise headquarters are shouting for win-win with the franchisees one by one. If the franchisees live, the head office will also live.
That’s true, but the reality is a little different.
If a franchisee goes bankrupt, the owner loses all his/her property, but it is a little disappointing for the head office, but it is enough to attract other franchisees.
Therefore, the basic relationship between the head office and the franchisee is inevitably clear.
This is true not only for franchises, but for all sectors. Democracy is one person, one vote, but capitalism is one won, one vote.
Whether in finance or industry, having a lot of money is always advantageous. So, if you just leave it to the market principle, the possessor will monopolize everything.
To prevent this situation, there are the Fair Trade Act and the Franchise Business Act… … As always, the law doesn’t help much.
Ellie looked at me and asked.
“Why the hell is Korea like this?”
“… … .”
I have nothing to say.
Gapjil at the franchise headquarters has a very deep history. Unilateral termination of franchise contract, coercion of interior design or remodeling, excessive marketing cost demands, tolls on delivery materials, etc.
Whenever problems arise, the need to revise the Franchise Business Act has been raised, but the related laws are still dormant in the National Assembly.
Is this why the word Hell Joseon comes from?
Of course, there are many franchises that coexist without any problems. However, the reality is that if you meet the wrong head office, you will shed tears as you do now.
“What does the franchise headquarters do?”
“It’s the MCK group.”
“MCK?”
It’s a name you’ve heard somewhere.
“What are you doing?”
“You know Master Chicken? Meister Pizza is an affiliate there.”
“If it’s a master chicken… … Chae Myung-ho?”
Jae-Hak Kim nodded.
“right. The CEO of Meister Pizza is Chae Myung-ho.”
“… … .”
It must have something to do with Master Chicken.
Ellie looked at my expression and asked.
“What’s wrong?”
I laughed.
“It’s nothing. It just reminds me of something from the past.”
This is no joke of fate, and the juniors at school must be beating the senior military officers.
I remembered a classmate of business administration that I had seen at school a long time ago. I asked if I had come to my senses, but again, I can’t give you my habit
Anyway, if I didn’t know, I wouldn’t know, I can’t stay still since I know.
I said to him with a gloomy expression on the ground and sighing.
“Do not worry. Let me help you.”
“how?”
“that’s… … .”
i have a lot of money But that doesn’t mean I can do everything my way.
If I use the power of money to attack Meister Pizza in an unfair way, it will be nothing but the chaebols often do. And these days, public opinion does not stand still.
For example, if Chairman Im Jin-yong went out to ruin Heungbu’s Budaejjigae, what would people think?
So, how best to solve this?
I know things like automobiles, batteries, and IT, but I don’t know much about the restaurant business. I’ve never worked in a restaurant before.
If you don’t know, you should consult an expert.
I wondered if there were any catering experts around me. Fortunately, one person came to mind.
I called right away.
[Hello, CEO Kang Jin-hoo.]“Hello, Mr. Lim Su-mi.”
Ceylon Hotel’s main focus is hotels and duty-free shops. However, hotels across the country run their own cafes, bakeries, Korean food, and buffets.
All of the restaurants are famous for their gourmet food, and the bakery brand has been launched as a separate franchise. That’s how well you know the restaurant business.
“I have a favor to ask, so I called.”
I feel a little sorry that I only contact you when there is something necessary.
President Lim Su-mi said with a smile.
[If it’s not anyone else and CEO Kang Jin-hoo’s request, of course I have to do it.]I briefly explained the situation and then said.
“Can you send me just one franchise expert?”
[of course. I’ll send it right now.]“Thank you.”
After the call was over, I looked at the two of them and said,
“The expert will come in a little while, so let’s hear it.”
* * *
after an hour or so.
A black S-Class Maybach stopped in front of the store, and a middle-aged woman in a suit entered.
“Good morning.”
I was surprised to see her.(Read more @ wuxiax.com)
“You just need to send in the experts… … .”
President Lim Su-mi said with a smile.
“I am the most expert in this field.”
“Yeah, right?”
Kim Jae-hak also responded that it was absurd. But who would have known that the CEO of the Ceylon Hotel would come to the franchise pizza shop in the alley?
I asked about this after some Windows error, and Bill Gates is not coming to fix the computer… … .
“I don’t eat, so can you make a pizza for me?”
“Oh, I see.”
Kim Jae-hak went into the kitchen and quickly made a pizza.
President Sumi Lim sat down and tried the pizza that just came out.
“I’ve had it a few times before, and it’s definitely delicious. MCK Group places great importance on taste and quality to the extent that it operates a separate menu development team and quality control team.”
In the meantime, Master Chicken has had several problems with the head office and the chairman. There was a boycott, but that was the only time. There was no impact to sales.
Some people value good consumption, but most consumers value brand awareness, price, and taste more important.
It was clear that Master Chicken Chairman Chae Dae-ho had business acumen apart from his personality. In particular, he spared no investment in taste and quality.
Excellent taste, systematic system, and uniform service at each branch are the greatest strengths of Master Chicken. It is not for nothing that it has risen to the top of the industry in the fierce chicken market.
Jae-Hak Kim nodded.
“I was debating among several pizza franchises, but I chose Meister Pizza because it tasted the best.”
“On the way home, I looked around the newly opened directly managed store. It’s definitely too close. Considering the floating population of this area, there is no reason to have two identical franchises. I don’t know what happened, but it can be said that the headquarters went out to kill the franchisees.”
“What is the benefit to headquarters?”
“As you would know if you looked around, new apartments are being built, and land development is in full swing. Of course, it will take a few more years to move in, but it is clear that the commercial district in this area will grow. If a franchisee can’t stand it and closes its doors, the directly managed store will take its place.”
From what I’ve heard, it’s not uncommon in the franchise industry for the headquarters to take away successful franchisees in this way.
“Then what should I do?”
“The simplest solution is for CEO Kang Jin-hoo to come forward and protest.”
Even if you listen to the store owner’s protest, my protest won’t be the same.
President Lim Su-mi looked at me and said.
“If the head office finds out about the relationship between CEO Kang Jin-hoo and the franchisee, we will immediately apologize and close the directly managed store.”
It doesn’t have to be difficult to solve something that can be easily solved.
“Let’s go to headquarters and talk.”
Jae-Hak Kim shook his head.
“You said He went to the head office several times to protest, and then got kicked out. Now we are not accepting requests for an interview, and we are not letting you into the building.”
I told him I was worried.
“Do not worry. Come with me.”
